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1. Take Test: ACC444 Midterm 10/3

2019 Fall Term (1) Advanced Accounting Problems ACC 444 ZD81[57676] (Lehman College)

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Take Test: ACC444 Midterm 10/3

Test Information

Description

Instructions

Timed Test

This test has a time limit of 1 hour and 30 minutes.This test will save and submit automatically when the time expires.

Warnings appear whenhalf the time,5 minutes,1 minute, and30 secondsremain.

Multiple Attempts

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Force Completion

Once started, this test must be completed in one sitting. Do not leave the test before clickingSave and Submit.

Remaining Time:1 hour,22minutes,35seconds.

Question Completion Status:

QUESTION 1

1. Stine Corp.'s trial balance reflected the following account balances at December 31, 2010:
2. Accounts receivable(net)$24,000
3. Tradingsecurities6,000
4. Accumulated depreciation on equipment andfurniture15,000
5. Cash11,000
6. Inventory30,000
7. Equipment25,000
8. Patent4,000
9. Prepaidexpenses2,000
10. Land held for future businesssite18,000
11. In Stine's December 31, 2010 balance sheet, the current assets total is
12. a.$90,000.
13. b.$82,000.
14. c.$77,000.
15. d.$73,000.

10 points

QUESTION 2

1. Which of the following facts concerning fixed assets should be included in the summary of significant accounting policies?
2. Depreciation MethodComposition
3. a.NoYes
4. b.YesYes
5. c.YesNo
6. d.NoNo

10 points

QUESTION 3

1. On January 4, 2010, Kiley Co. leased a building to Dodd Corp. for a ten-year term at an annual rental of $75,000. At inception of the lease, Dodd received $300,000 covering the first two years' rent of $150,000 and a security deposit of $150,000. This deposit will not be returned to Dodd upon expiration of the lease but will be applied to payment of rent for the last two years of the lease. What portion of the $300,000 should be shown as a current and long-term liability in Kiley's December 31, 2010 balance sheet?
2. Current LiabilityLong-term Liability
3. a.$0$300,000
4. b.$75,000$150,000
5. c.$150,000$150,000
6. d.$150,000$75,000

10 points

QUESTION 4

1. Houghton Company has the following items: common stock, $720,000; treasury stock, $85,000; deferred taxes, $100,000 and retained earnings, $313,000. What total amount should Houghton Company report as stockholders' equity?
2. a.$848,000.
3. b.$948,000.
4. c.$1,048,000.
5. d.$1,118,000.

10 points

QUESTION 5

1. For Randolph Company, the following information is available:
2. Capitalizedleases$280,000
3. Trademarks90,000
4. Long-termreceivables105,000
5. In Randolph's balance sheet, intangible assets should be reported at
6. a.$90,000.
7. b.$105,000.
8. c.$370,000.
9. d.$385,000.

10 points

QUESTION 6

1. Ortiz Co. had the following account balances:
2. Sales$120,000
3. Cost of goodssold60,000
4. Salaryexpense10,000
5. Depreciationexpense20,000
6. Dividendrevenue4,000
7. Utilitiesexpense8,000
8. Rentalrevenue20,000
9. Interestexpense12,000
10. Salesreturns11,000
11. Advertisingexpense13,000
12. What would Ortiz report as total revenues in a single-step income statement?
13. a.$133,000
14. b.$10,000
15. c.$144,000
16. d.$120,000

10 points

QUESTION 7

1. For Mortenson Company, the following information is available:
2. Cost of goodssold$60,000
3. Dividendrevenue2,500
4. Income taxexpense6,000
5. Operatingexpenses23,000
6. Sales100,000
7. In Mortenson's single-step income statement, gross profit
8. a.should not be reported.
9. b.should be reported at $13,500.
10. c.should be reported at $40,000.
11. d.should be reported at $42,500.

10 points

QUESTION 8

1. For Rondelli Company, the following information is available:
2. Cost of goodssold$90,000
3. Dividendrevenue4,000
4. Income taxexpense9,000
5. Operatingexpenses35,000
6. Sales150,000
7. In Rondelli's multiple-step income statement, gross profit
8. a.should not be reported
9. b.should be reported at $20,000.
10. c.should be reported at $60,000.
11. d.should be reported at $64,000.

10 points

QUESTION 9

1. Didde Corp. reports operating expenses in two categories: (1) selling and (2) general and administrative. The adjusted trial balance at December 31, 2010 included the following expense and loss accounts:
2. Accounting and legalfees$140,000
3. Advertising180,000
4. Freight-out80,000
5. Interest70,000
6. Loss on sale of long-terminvestment30,000
7. Officers'salaries225,000
8. Rent for officespace220,000
9. Sales salaries andcommissions170,000
10. One-half of the rented premises is occupied by the sales department. Didde's total selling expenses for 2010 are
11. a.$540,000.
12. b.$460,000.
13. c.$430,000.
14. d.$370,000.

10 points

QUESTION 10

1. James, Inc. incurred the following infrequent losses during 2010:
2. A $70,000 write-down of equipment leased to others.
3. A $40,000 adjustment of accruals on long-term contracts.
4. A $60,000 write-off of obsolete inventory.
5. In its 2010 income statement, what amount should James report as total infrequent losses that are not considered extraordinary?
6. a.$170,000.
7. b.$130,000.
8. c.$110,000.
9. d.$100,000.

10 points

QUESTION 11

1. The statement of cash flows helps meet one of the objectives of financial reporting, which is to assess all of the following except the
2. a.amount of future cash flows.
3. b.source of future cash flows.
4. c.timing of future cash flows.
5. d.uncertainty of future cash flows.

10 points

QUESTION 12

1. If common stock was issued to acquire an $8,000 machine, how would the transaction appear on the statement of cash flows?
2. a.It would depend on whether you are using the direct or the indirect method.
3. b.It would be a positive $8,000 in the financing section and a negative $8,000 in the investing section.
4. c.It would be a negative $8,000 in the financing section and a positive $8,000 in the investing section.
5. d.It would not appear on the statement of cash flows but rather on a schedule of noncash investing and financing activities.

10 points

QUESTION 13

1. Which of the following events will appear in the cash flows from financing activities section of the statement of cash flows?
2. a.Cash purchases of equipment.
3. b.Cash purchases of bonds issued by another company.
4. c.Cash received as repayment for funds loaned.
5. d.Cash purchase of treasury stock.

10 points

QUESTION 14

1. Making and collecting loans and disposing of property, plant, and equipment are
2. a.operating activities.
3. b.investing activities.
4. c.financing activities.
5. d.liquidity activities.

10 points

QUESTION 15

1. In preparing a statement of cash flows, cash flows from operating activities
2. a.are always equal to accrual accounting income.
3. b.are calculated as the difference between revenues and expenses.
4. c.can be calculated by appropriately adding to or deducting from net income those items in the income statement that do not affect cash.
5. d.can be calculated by appropriately adding to or deducting from net income those items in the income statement that do affect cash.

10 points

QUESTION 16

1. In preparing a statement of cash flows, which of the following transactions would be considered an investing activity?
2. a.Sale of equipment at book value
3. b.Sale of merchandise on credit
4. c.Declaration of a cash dividend
5. d.Issuance of bonds payable at a discount

10 points

QUESTION 17

1. Keisler Corporation reports:
2. Cash provided by operatingactivities$200,000
3. Cash used by investingactivities110,000
4. Cash provided by financingactivities140,000
5. Beginning cashbalance70,000
6. What is Keisler's ending cash balance?
7. a.$230,000.
8. b.$300,000.
9. c.$450,000.
10. d.$520,000.

10 points

QUESTION 18

1. Harding Corporation reports the following information:
2. Netincome$500,000
3. Depreciation expense140,000
4. Increase in accountsreceivable60,000
5. Harding should report cash provided by operating activities of
6. a.$300,000.
7. b.$420,000.
8. c.$580,000.
9. d.$700,000.

10 points

QUESTION 19

1. Sauder Corporation reports the following information:
2. Netincome$250,000
3. Depreciationexpense70,000
4. Increase in accountsreceivable30,000
5. Sauder should report cash provided by operating activities of
6. a.$150,000.
7. b.$210,000.
8. c.$290,000.
9. d.$350,000.

10 points

QUESTION 20

1. indicate whether they will have apositiveornegative EFFECT ON CASH
3. Theproceedsfrom the sale of equipment formerly used in the business
4. Positive
5. Negative

10 points

QUESTION 21

1. indicate whether they will have apositiveornegative EFFECT ON CASH
2. Anincreasein Accounts Receivable
3. Positive
4. Negative

10 points

QUESTION 22

1. indicate whether they will have apositiveornegative EFFECT ON CASH
2. The Gain on the Sale of Equipment formerly used in the business
3. Positive
4. Negative

10 points

QUESTION 23

1. indicate whether they will have apositiveornegative EFFECT ON CASH
2. Adecreasein Accounts Payable
3. Positive
4. Negative

10 points

QUESTION 24

1. indicate whether they will have apositiveornegative EFFECT ON CASH
2. Anincreasein the current liability Warranty Liability
3. Positive
4. Negative

10 points

QUESTION 25

1. indicate whether they will have apositiveornegative EFFECT ON CASH
3. Dividends declared and paid
4. Positive
5. Negative

10 points

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